This year’s survey shows continued improvement in trading conditions and many firms enjoying increased revenues and profits again in 2016.
Maintaining profitability continues to be one of the main challenges for the sector with increasing fee pressures and continuing pay and operating cost increases. Increases in operating costs were reported primarily in the larger firms (46%), in Dublin firms (38%) and less so in firms outside Dublin (19%). Salary pressures, additional staff numbers and property costs are the primary drivers of these increases. Marketing and IT spend have increased and are running each at c. 5% of turnover for most firms.
These numbers help to explain why almost two in three firms stated that the outlook for their firm improved in 2016 and were confident about the outlook for their firm in 2017.
The data was drawn from a survey of 107 practices in September and October, conducted by Amárach Research.
Download the report here.